MILK
December and later Class III milk contracts closed the day hovering around the $19.00 level. Underlying cash prices show no reason for traders to get excited over buying milk futures.
The World Supply and Demand report was released Friday. The report not only shows changes in production and the balances sheets for gains, but also estimates for milk production and dairy prices. The milk production estimate for this year was raised by 200 million pounds to 226.0 billion. This would be a decrease of 400 million pounds from 2023. The estimate for 2025 was left unchanged at 227.7 billion pounds. The Class III average milk price for this year was left unchanged at $19.05. The average price for 2025 was raised by $0.35 to $19.30. The Class IV price was reduced by $0.05 this year to $20.75 and reduced $0.05 next year to an average of $20.30. The all-milk price was reduced by $0.05 this year to $22.75 and raised $0.10 to an average of $22.85 for 2025. The average corn yield per acre on the report showed 183.1 bushels, down from 183.8 in October. The soybean yield per acre was reduced by 1.4 bushels to an average of 51.7 bushels. Corn ending stocks were reduced to 1.938 billion bushels with soybean ending stocks reduced to 470 million bushels. This was a friendly report for gain but still shows a lot of grain will be available throughout the year.
AVERAGE CLASS III PRICES
| 3 Month: | $19.40 |
| 6 Month: | $19.29 |
| 9 Month: | $19.17 |
| 12 Month: | $19.13 |
CHEESE
For the week, blocks declined 11.75 cents with five loads traded. Barrels declined 10 cents with only one load traded. Dry whey increased 2.50 cents with 10 loads traded. USDA left their price estimate unchanged this year at $1.8850 per pound. They raised the average price the next year by 1.50 cents from the October estimate to $1.8950. The dry whey price this year was raised 0.50 cent to 48.50 cents per pound and was raised 3 cents next year to an average of 52 cents.
BUTTER
For the week, butter declined 2 cents with 10 loads traded. Grade A nonfat dry milk increased one cent with 11 loads traded. The butter price was reduced by 3 cents this year to $2.8950 per pound. The average price for 2025 was lowered 3 cents to $2.7550 per pound. The nonfat dry milk price increased by a penny this year to $1.24 per pound and raised a penny next year to $1.26 per pound.
OUTSIDE MARKETS SUMMARY
December corn closed up 3.50 cents per bushel at $4.3100, January soybeans closed up 4.00 cents at $10.3025 and December soybean meal closed down $2.30 per ton at $296.20. December Chicago wheat closed up 1.00 cent at $5.7250. December live cattle closed down $2.13 at $183.70. December crude oil is down $1.98 per barrel at $70.38. The Dow Jones Industrial Average is up 260 points at 43,989 with the NASDAQ up 17 points at 19,287.
